Being fired negatively impacts the educational performance of the child of the person fired, according to a Ministry of Finance study published Thursday.
This is true for children in households with an income below the median income, said the report.
These children, whose parents were fired unexpectedly, were less likely by 3.7 percentage points to achieve an Israeli matriculation certificate.
This represents more than 10% damage when compared to the average likelihood of achieving a matriculation certificate in this group, the report added.
The impact of a parent’s sudden job loss on children in households in the upper median of income was not statistically significant.
These results are in line with economic literature on this topic, the report added.
The ministry also examined the impact of sudden firing on the likelihood of the person fired being involved in crime.
In the year following the firing, there is a statistically significant increase in the likelihood of the person fired being involved in crimes with economic motives, the report found.
There was an increase of 0.1 percentage points for those who were fired compared to those who were not fired, said the report, adding that this is an increase of around 200% compared to the base level before being fired (which is very close to zero).
There was no impact of being fired on the likelihood of the person fired being involved in violent crime.
The broad spectrum of outcomes on a fired employee and their family highlights the necessity of tools to help those who are fired, the ministry said, touching on policy implications from the research and its two previous chapters.
Active policy, especially that helps those fired with higher incomes and who are older, may temper the impacts of being fired, it added.